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While goods meet personal needs, services meet business needs.

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The ________ rates the various elements of the service bundle and identifies required actions.


A) company performance analysis
B) voice of customer measurement
C) customer factor measurement
D) importance-performance analysis
E) customer importance analysis

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The Caesar Park Hotel generally caters to business customers during the week, but has now decided to promote mini vacation weekends for non-business customers as well. What is the Caesar Park Hotel trying to do?


A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.

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Customers want unbundled services, with separate prices for each service element and the right to select the elements they want.

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Dean recently had a BRZ broadband connection installed. However, the connection was bad and he didn't get the quality he required. He contacted BRZ about the problem, but the company did not solve his problem. Dean switched to Blue Broadband. Which of the following was the cause of Dean's switching behavior?


A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures
E) inconvenience

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List three steps that service firms can take to increase quality control over services and reduce variability.

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Three steps that service firms can take ...

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What the customer expects from a service is called the primary service package.

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The most important determinant of service quality is ________ which refers to the ability to perform the promised service dependably and accurately.


A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles

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The customer service representatives at a call center have been asked to handle each call in not more than five minutes. At the same time, they have been asked to answer all customer queries in detail and provide appropriate solutions. What kind of service gap is apparent here?


A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception

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Which of the following will help a service provider overcome the limits imposed by the inseparability of services?


A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process

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Responsiveness is a company's willingness to help customers and provide prompt service.

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When sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, they are offering ________.


A) a complementary service
B) payment equity
C) a service blueprint
D) differential pricing
E) an extended warranty

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Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________.


A) retailer convenience
B) profit tiers
C) psychographic characteristics
D) social influence
E) customer preference

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Expensive equipment manufacturers not only install the equipment but also train the staff and undertake the maintenance and repair activities of the equipment. By doing so, they are providing ________.


A) payment equity
B) value-augmenting services
C) differential pricing
D) facilitating services
E) a primary service package

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Best Western is a mid-sized hotel chain that is entering a competitive market. The chain needs to differentiate its service from that of competitors, positioning itself as a hotel chain with excellent service at an affordable price. How can it achieve this using internal marketing?

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Services high in ________ have characteristics that the buyers can evaluate before purchase.


A) search qualities
B) experience qualities
C) credence qualities
D) privacy qualities
E) storing qualities

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Retail chain REB wants to find out how its customers perceive its services and what it can do to improve these. What methods can the company use to discover this?

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REB can audit service performance, both ...

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Pricing has no negative effect on customer loyalty.

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Services have five distinctive characteristics, one of these being "pure service."

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Importance-performance analysis rates the various elements of the service bundle and identifies required actions.

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